Gold and copper on a tear in a bumper week for commodities Hard commodities, led by copper and gold, marched higher this week as inflation fears rose and the U.S. dollar fell, driving the price of copper through the US$5 per pound mark and gold to a record US$3050 an ounce. The spreading trade war prompted a warning from Jay Powell, chairman of the U.S. central bank, that the global economic growth outlook had dimmed, adding to the appeal of gold, and its sister metal, silver, which thrive on uncertainty. Tariff attacks on friends and enemies orchestrated by the U.S. President, Donald Trump, further rattled investor confidence, creating genuine boom conditions for Australia’s gold mining and gold exploration industries.
In a week of hectic trading the ASX gold index rocketed up by 9% takings its rise since January to 27% and the rise over the last 12-months to 60%, a rise which means local gold stocks are now outperforming the gold price which is “only” up 40% over the last 12-months. Small gold producers and explorers outperformed leaders this week, a sign that the gold boom is spreading deeper into the sector as investors hunt for undervalued stocks
Our SP at HRZ is just so darn cheap, at some stage we will be the hunted well and truly I am sure of it. GLTAH DYOR
HRZ Price at posting:
6.6¢ Sentiment: Buy Disclosure: Held
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